UNITED  STATES
                       SECURITIES  AND  EXCHANGE  COMMISSION
                            WASHINGTON,  D.C.  20549

                                   FORM 10-QSB

(Mark  One)

[X]  QUARTERLY  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF  1934
     For  the  quarterly  period  ended  December  31,  2000
                                         -------------------

[ ]  TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE  EXCHANGE  ACT
     For  the  transition  period  from          to

     Commission  file  number  0-30299
                               -------

                         GLOBAL INNOVATIVE SYSTEMS, INC.
                         -------------------------------
        (Exact name of small business issuer as specified in its charter)

NEVADA                                                                98-0217653
------                                                                ----------
(State or other jurisdiction                                    (I.R.S. Employer
of incorporation or organization)                            Identification No.)

            5975 SELKIRK CRESCENT, PRINCE GEORGE, BC, CANADA  V2N 2G9
            ---------------------------------------------------------
                    (Address of principal executive offices)

                                 (250) 964-2692
                                 --------------
                           (Issuer's telephone number)

                                 NOT APPLICABLE
                                 --------------
    (Former name, former address and former fiscal year, if changed since last
                                     report)

     Check  whether  the  issuer:  (1) filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject  to  such  filing requirements for the past 90 days.
      Yes [X]  No [ ]

<PAGE>

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check  whether  the  registrant  filed  all documents and reports required to be
filed  by  Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities  under  a  plan  confirmed  by  a  court.     Yes [ ]     No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of  the  latest  practicable  date:

21,700,000  common  shares  issued  and  outstanding  as  at  January  15,  2001
--------------------------------------------------------------------------------

Transitional  Small  Business  Disclosure  Format  (Check one):  Yes [ ]  No [X]

                         PART I - FINANCIAL INFORMATION

ITEM  1.     FINANCIAL  STATEMENTS.

Our  financial  statements  are  stated  in  United States Dollars (US$) and are
prepared  in  accordance  with  United  States  Generally  Accepted  Accounting
Principles.

DISCLOSURE

To:     The  Shareholders  of
        Global  Innovative  Systems,  Inc.

It  is  the  opinion of management that the interim financial statements for the
quarter  ended  December  31, 2000 include all adjustments necessary in order to
ensure  that  the  financial  statements  are  not  misleading.

Prince  George,  British  Columbia                           /s/  Ken  Bergestad
Date:  February  9,  2001            Director of Global Innovative Systems, Inc.

<PAGE>

<TABLE>
<CAPTION>


                                       GLOBAL INNOVATIVE SYSTEMS INC.
                                       (A DEVELOPMENT STAGE COMPANY)

                                        CONSOLIDATED BALANCE SHEETS
                                         (EXPRESSED IN US DOLLARS)



                                                                        DECEMBER 31,          SEPTEMBER 30,
                                                                           2000                        2000
                                                            --------------------------------     ----------
                                                            (UNAUDITED)
<S>                                                         <C>                                  <C>
ASSETS

Current assets
  Cash . . . . . . . . . . . . . . . . . . . . . . . . . .  $                       -            $     726
  Receivables. . . . . . . . . . . . . . . . . . . . . . .                        678                  390
  Prepaid expenses . . . . . . . . . . . . . . . . . . . .                      6,754                4,401
                                                            -----------------------------------  ----------
                                                                                7,432                5,517
Fixed assets . . . . . . . . . . . . . . . . . . . . . . .                      7,548                8,136
License. . . . . . . . . . . . . . . . . . . . . . . . . .                     50,017               50,676
                                                            -----------------------------------  ----------

                                                            $                  64,997            $  64,329
                                                            ===============================================

LIABILITIES

Current liabilities
  Bank overdraft . . . . . . . . . . . . . . . . . . . . .  $                   2,936            $       -
  Accounts payable . . . . . . . . . . . . . . . . . . . .                     66,889               58,997
  Accrued liabilities. . . . . . . . . . . . . . . . . . .                     14,554               11,462
  Loan payable to related party (Note 5) . . . . . . . . .                     31,677               32,095
  Advances from stockholders and directors (Note 6). . . .                    190,578              183,850
                                                            -----------------------------------  ----------
                                                                              305,634              286,404
                                                            -----------------------------------  ----------


STOCKHOLDERS' DEFICIT

Common stock
  Authorized:  200,000,000 common shares par value $0.001
  Issued:            21,700,000 common shares. . . . . . .                     21,700               21,700

Additional paid in capital . . . . . . . . . . . . . . . .                    410,632              410,632

Accumulated other comprehensive income
  Foreign currency translation loss. . . . . . . . . . . .                     (7,549)              (9,927)

Deficit accumulated in the development stage . . . . . . .                   (665,420)            (644,480)
                                                            -----------------------------------  ----------
                                                                             (240,637)            (222,075)
                                                            -----------------------------------  ----------

                                                            $                  64,997            $  64,329
                                                            ===============================================

The accompanying notes are an integral part of these financial statements.


</TABLE>

<PAGE>

<TABLE>
<CAPTION>

GLOBAL  INNOVATIVE  SYSTEMS  INC.
(A  DEVELOPMENT  STAGE  COMPANY)

CONSOLIDATED  STATEMENTS  OF  OPERATIONS  (UNAUDITED)
(EXPRESSED  IN  US  DOLLARS)



                                              JANUARY 15, 1997
                                             (INCORPORATION) TO
                                             DECEMBER 31, 2000              THREE MONTHS ENDED DECEMBER 31,
                                               CUMULATIVE                  2000                          1999
------------------------------------------  -------------------  --------------------------------------------
<S>                                         <C>                  <C>                                <C>
EXPENSES
  Accounting, audit and legal. . . . . . .  $           58,344   $               4,411              $  6,451
  Automotive . . . . . . . . . . . . . . .              20,595                   1,252                   615
  Bank charges and interest. . . . . . . .               7,605                     732                 1,726
  Consulting . . . . . . . . . . . . . . .              10,064                       -                     -
  Depreciation . . . . . . . . . . . . . .               5,810                     433                   510
  Directors fees . . . . . . . . . . . . .              24,000                   6,000                     -
  Insurance, license and dues. . . . . . .              20,288                   1,797                 1,659
  Office and supplies. . . . . . . . . . .               4,604                     244                   727
  Rent . . . . . . . . . . . . . . . . . .              13,623                     541                    68
  Research and development costs . . . . .             404,663                   1,578                16,938
  Royalty. . . . . . . . . . . . . . . . .               6,734                   1,639                     -
  Salaries . . . . . . . . . . . . . . . .              20,378                       -                     -
  Telephone. . . . . . . . . . . . . . . .              11,483                     756                 1,136
  Travel . . . . . . . . . . . . . . . . .              18,329                   1,557                   220
                                            -------------------  ---------------------------------  ---------

LOSS BEFORE OTHER ITEMS. . . . . . . . . .            (626,520)                (20,940)              (30,050)
                                            -------------------  ---------------------------------  ---------

OTHER ITEMS
  Interest income. . . . . . . . . . . . .               4,615                       -                 2,675
  Loss on terminated proposed
    business acquisition . . . . . . . . .             (45,376)                      -               (33,417)
                                            -------------------  ---------------------------------  ---------
                                                       (40,761)                      -               (30,742)
                                            -------------------  ---------------------------------  ---------

NET LOSS FOR THE PERIOD. . . . . . . . . .  $         (667,281)  $             (20,940)             $(60,792)
                                            =================================================================




LOSS PER SHARE - BASIC AND DILUTED . . . .  $             0.00   $                           0.01
                                            ===================  =================================

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING          21,700,000                         12,000,000
                                            ===================  =================================

The accompanying notes are an integral part of these financial statements.


</TABLE>

<PAGE>

<TABLE>
<CAPTION>

GLOBAL  INNOVATIVE  SYSTEMS  INC.
(A  DEVELOPMENT  STAGE  COMPANY)

CONSOLIDATED  STATEMENTS  OF  CHANGES  IN  STOCKHOLDERS'  DEFICIT  (UNAUDITED)
(EXPRESSED  IN  US  DOLLARS)


                                                                                                            Accumulated Other
                                                                      Common Shares           Additional     Comprehensive
                                                                   Number       Amount     Paid-In Capital       Income
<S>                                                      <C>                 <C>           <C>              <C>
Balance, September 30, 1999 - Niew Industries Inc.
  carried forward . . . . . . . . . . . . . . . . . . .              5,000   $     3,265   $            -   $     (5,751)

Common stock redeemed at $1 Cdn on October 31, 1999 . .             (2,850)       (1,861)               -              -

Adjustment for the issuance of common stock on
  reverse acquisition . . . . . . . . . . . . . . . . .         11,997,850        10,596                -              -

Adjustment of debts to former stockholders of
  Niew Industries Inc. (Note 3) . . . . . . . . . . . .                  -             -          410,268              -

Adjustment for the stockholders' equity of the Company
  at the acquisition date (Note 3). . . . . . . . . . .          9,700,000         9,700              364              -
                                                         ------------------  ------------  ---------------  -------------
                                                                21,700,000        21,700          410,632         (5,751)
                                                         ------------------  ------------  ---------------  -------------

  Net loss for the year . . . . . . . . . . . . . . . .                  -             -                -              -
  Foreign currency translation loss . . . . . . . . . .                  -             -                -         (4,176)
                                                         ------------------  ------------  ---------------  -------------
  Total comprehensive loss. . . . . . . . . . . . . . .                  -             -                -         (4,176)
                                                         ------------------  ------------  ---------------  -------------

Balance, September 30, 2000 . . . . . . . . . . . . . .         21,700,000        21,700          410,632         (9,927)
                                                         ------------------  ------------  ---------------  -------------

Net loss for the period . . . . . . . . . . . . . . . .                  -             -                -              -
Foreign currency translation gain . . . . . . . . . . .                  -             -                -          2,378
                                                         ------------------  ------------  ---------------  -------------
                                                                         -             -                -          2,378
                                                         ------------------  ------------  ---------------  -------------

Balance, December 31, 2000. . . . . . . . . . . . . . .         21,700,000   $    21,700   $      410,632   $     (7,549)
                                                       ==================================================================

                                                               Deficit
                                                           Accumulated in      Total
                                                          the Development   Stockholders
                                                               Stage          Deficit
<S>                                                      <C>              <C>
Balance, September 30, 1999 - Niew Industries Inc.
  carried forward . . . . . . . . . . . . . . . . . . .  $     (405,593)  $(408,079)

Common stock redeemed at $1 Cdn on October 31, 1999 . .           1,861           -

Adjustment for the issuance of common stock on
  reverse acquisition . . . . . . . . . . . . . . . . .         (10,596)          -
Adjustment of debts to former stockholders of
  Niew Industries Inc. (Note 3) . . . . . . . . . . . .          10,596     420,864

Adjustment for the stockholders' equity of the Company
  at the acquisition date (Note 3). . . . . . . . . . .               -      10,064
                                                         ---------------  ----------
                                                               (403,732)     22,849
                                                         ---------------  ----------

  Net loss for the year . . . . . . . . . . . . . . . .        (240,748)   (240,748)
  Foreign currency translation loss . . . . . . . . . .               -      (4,176)
                                                         ---------------  ----------
  Total comprehensive loss. . . . . . . . . . . . . . .        (240,748)   (244,924)
                                                         ---------------  ----------

Balance, September 30, 2000 . . . . . . . . . . . . . .        (644,480)   (222,075)
                                                         ---------------  ----------

Net loss for the period . . . . . . . . . . . . . . . .         (20,940)    (20,940)
Foreign currency translation gain . . . . . . . . . . .               -       2,378
                                                         ---------------  ----------
                                                                (20,940)    (18,562)
                                                         ---------------  ----------

Balance, December 31, 2000. . . . . . . . . . . . . . .  $     (665,420)  $(240,637)
                                                        ============================

The accompanying notes are an integral part of these financial statements.


</TABLE>

<PAGE>


<TABLE>
<CAPTION>

GLOBAL  INNOVATIVE  SYSTEMS  INC.
(A  DEVELOPMENT  STAGE  COMPANY)

CONSOLIDATED  STATEMENTS  OF  CHANGES  IN  STOCKHOLDERS'  DEFICIT  (UNAUDITED)
 (EXPRESSED  IN  US  DOLLARS)

                                                                                                          Deficit
                                                                                              Foreign   Accumulated
                                                                                Additional    Currency     in the         Total
                                                                                 Paid In    Translation  Development  Stockholders
                                                               Shares    Amount  Capital    Adjustments     Stage        Deficit
<S>                                                            <C>       <C>      <C>       <C>            <C>          <C>

Initial capitalization of the company as of January 15, 1997   100       $   67   $  -      $      -       $       -    $      67

Common stock issued at $1 Cdn April 15, 1998                 4,900        3,198      -             -               -        3,198

Total comprehensive loss, 1998                                   -            -      -         8,588         (260,374)   (251,786)
                                                             -----        ------   ----    ---------        ----------   ----------

Balance, September 30, 1998                                  5,000        3,265      -         8,588         (260,374)   (248,521)

Total comprehensive loss, 1999                                   -            -      -       (14,339)        (145,219)   (159,558)
                                                             -----        ------   ----     ---------       ----------   ----------

Balance, September 30, 1999                                  5,000       $3,265   $  -      $ (5,751)       $(405,593)  $(408,079)


The accompanying notes are an integral part of these financial statements
</TABLE>

<PAGE>


<TABLE>
<CAPTION>

GLOBAL  INNOVATIVE  SYSTEMS  INC.
(A  DEVELOPMENT  STAGE  COMPANY)

CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  (UNAUDITED)
(EXPRESSED  IN  US  DOLLARS)



                                                   JANUARY 15, 1997
                                                  (INCORPORATION) TO
                                                  DECEMBER 31, 2000         THREE MONTHS ENDED DECEMBER 31,
                                                     CUMULATIVE               2000                       1999
-----------------------------------------------  --------------------      ----------------------------------
<S>                                              <C>                   <C>                                <C>

CASH PROVIDED BY (USED IN)
  Operating
      Net loss for the period . . . . . . . . .  $          (667,281)  $            (20,940)        $(60,792)
      Non cash item
          Depreciation. . . . . . . . . . . . .                5,810                    433              510
      (Increase) decrease in assets
          Receivables . . . . . . . . . . . . .                 (678)                    48              (56)
          Investment tax credits refundable . .                    -                      -           44,846
           Prepaid expenses . . . . . . . . . .               (6,754)                 2,353            1,682
      Increase (decrease) in liabilities
          Accounts payable. . . . . . . . . . .               39,214                  6,892           (8,294)
          Accrued liabilities . . . . . . . . .               14,554                  3,092                -
                                                 --------------------  ---------------------------  ---------
                                                            (615,135)                (8,122)         (22,104)
                                                 --------------------  ---------------------------  ---------

  Financing
      Loan payable to related party . . . . . .               31,677                   (418)         (17,068)
      Loans payable . . . . . . . . . . . . . .                    -                      -                -
      Advances from stockholders and directors.              675,327                  9,229           46,406
      Repayments to stockholders. . . . . . . .              (72,256)                (2,501)               -
                                                 --------------------  ---------------------------  ---------
                                                             634,748                  6,310           29,338
                                                 --------------------  ---------------------------  ---------

  Investing
     Cash acquired on reverse acquisition . . .               10,064                      -                -
      Purchase of fixed assets. . . . . . . . .              (13,318)                     -                -
      Purchase of license . . . . . . . . . . .              (23,342)                     -                -
                                                 --------------------  ---------------------------  ---------
                                                             (26,596)                     -                -
                                                 --------------------  ---------------------------  ---------

INCREASE (DECREASE) IN CASH . . . . . . . . . .               (6,983)                (1,812)           7,234

EFFECT OF FOREIGN EXCHANGE ON CASH. . . . . . .                4,047                 (1,850)           1,446

CASH AT BEGINNING OF PERIOD . . . . . . . . . .                    -                    726              811
                                                 --------------------  ---------------------------  ---------

CASH (BANK OVERDRAFT) AT END
      OF PERIOD . . . . . . . . . . . . . . . .  $            (2,936)  $             (2,936)        $  9,491



The accompanying notes are an integral part of these financial statements.

</TABLE>

<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                            (EXPRESSED IN US DOLLARS)

                           DECEMBER 31, 2000 AND 1999

1.     UNAUDITED  FINANCIAL  STATEMENTS

The  interim financial statements for the three month periods ended December 31,
2000  and  1999 included herein have been prepared by the Company without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain  information  and  footnote  disclosures  normally included in financial
statements  prepared in accordance with generally accepted accounting principles
have  been condensed or omitted pursuant to such rules and regulations, although
the  Company  believes that the disclosures are adequate to make the information
presented  not  misleading.

These  statements  reflect  all  adjustments  consisting  of  normal  recurring
adjustments,  which,  in  the  opinion  of  management,  are  necessary for fair
presentation  of the information, contained therein.  It is suggested that these
interim  financial  statements  be  read  in  conjunction  with  the  financial
statements  of  the  Company for the years ended September 30, 2000 and 1999 and
the  notes  thereto included in the Company's annual report on Form 10-KSB.  The
Company  follows the same accounting policies in preparation of interim reports.

Results  of  operations  for  the  interim  periods are not indicative of annual
results.

2.     NATURE  OF  BUSINESS  AND  CONTINUING  OPERATIONS

The  Company  was  incorporated in the State of Nevada on September 14, 1995 and
was  inactive  until  January 31, 2000 when it closed a share exchange agreement
with  the  stockholders  of  Niew  Industries  Inc.  ("NIEW").  The  transaction
resulted  in  NIEW becoming a wholly owned subsidiary of the Company.  Since the
stockholders  of Niew controlled 55% of the combined entity after the merger and
the  business  of  Niew  presents  the  only  operations  of the new entity, the
transaction  was  recorded  as a reverse acquisition and Niew was considered the
accounting  acquirer.  As  such,  the  historical  financial  information of the
company  is  that  of  Niew.

NIEW  was  incorporated  on  January 15, 1997 under the British Columbia Company
Act.  The  Company  was  inactive  until  March  23,  1998  when  it  began  the
development  of  a  twin rotating asphalt mixing system.  To date, this has been
Niew's  only  activity.  These  financial statements are expressed in US dollars
and  have  been  prepared  in  accordance  with  accounting principles generally
accepted  in  the  United  States.

These  accompanying  consolidated  financial  statements have been prepared on a
going  concern  basis,  which  contemplates  the  realization  of assets and the
satisfaction  of  liabilities  and commitments in the normal course of business.
As  at  December  31,  2000,  the  Company  has  accumulated operating losses of
$667,281 since its inception.  The continuation of the Company is dependent upon
the  continuing  financial  support of creditors, directors and stockholders and
obtaining  long  term  financing  as  well  as  achieving  a profitable level of
operations  through  the  successful  development  of  the twin rotating asphalt
mixing  system.  It  is  the  intention  of  the  Company  to raise a new equity
financing  of  approximately  $550,000 within the upcoming year.  Amounts raised
will  be  used  to  complete the development of the twin rotating asphalt mixing
system  and  then  proceed  into  a  stage  of commercial production.  While the
Company  is  expending  its best efforts to achieve the above plans, there is no
assurance  that any such activity will generate funds that will be available for
operations.

     These  conditions  raise  substantial  doubt about the company's ability to
continue  as  a  going  concern.  These  financial statements do not include any
adjustments  that  might  arise  from  this  uncertainty.

<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           DECEMBER 31, 2000 AND 1999


3.   NEW  ACCOUNTING  PRONOUNCEMENTS

     In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
Accounting  for  Derivative  Instruments  and  Hedging Activities.  SFAS No. 133
requires  companies  to  recognize  all derivative contracts as either assets or
liabilities  on the balance sheet and to measure them at fair value.  If certain
conditions  are met, a derivative may be specifically designated as a hedge, the
objective  of  which  is  to match the timing of gain or loss recognition on the
hedging  derivative with the recognition of (i) the changes in the fair value of
the  hedged assets or liability that are attributable to the hedged risk or (ii)
the  earnings effect of the hedged forecasted transaction.  For a derivative not
designated  as a hedging instrument, the gain or loss is recognized in income in
the  period  of  change.  SFAS  No.  133 is effective for all quarters of fiscal
years  beginning  after  June  15,  2000.

     Historically,  the Company has not entered into derivative contracts either
to  hedge  existing risks or for speculative purposes.  Accordingly, adoption of
the  new  standards  did  not  affect  its  financial  statements.

     In  1999,  the  Securities  and Exchange Commission issued Staff Accounting
Bulletin No. 101 dealing with the revenue recognition, which is effective in the
fourth  quarter  of the Company's 2001 fiscal year.  The Company does not expect
its  adoption  to  have a material effect on the Company's financial statements.


4.   ACQUISITION  OF  NIEW  INDUSTRIES  INC.

By  agreement dated December 11, 1999, the Company agreed to acquire 100% of the
issued and outstanding shares, and settle $420,864 owing to the stockholders, of
Niew  Industries  Inc.  in exchange for 12 million common shares of the company.
The  acquisition  closed  on  January  31,  2000.

Effective  as  of  the closing date, the transaction was accounted for using the
purchase  method  of  accounting  as  applicable  for  a  reverse  acquisition.
Following  reverse  acquisition  accounting,  consolidated  financial statements
subsequent  to  closing  of  the  acquisition are presented as a continuation of
NIEW.  The  operations  of  the Company are consolidated with those of NIEW from
the  date  of  the  acquisition.

The net assets of the Company at the date of acquisition consisted of $10,064 of
cash  remaining  on its initial capitalization.  No goodwill was recorded on the
transaction.

Since  the  Company  was  inactive  until  the  acquisition  of  NIEW, pro-forma
information  reflecting  the acquisition had it occurred at the beginning of the
earliest  period  presented  would not yield results different from the net loss
and  loss  per  share  presented  on  the  Consolidated Statement of Operations.


5.     LOAN  PAYABLE  TO  RELATED  PARTY


The Company has borrowed $31,677 ($47,500 Canadian) from a person related to one
of  the  directors.  The  loan  is  unsecured  and  is without specific terms of
repayment.  Interest  is  payable at 8%.  Interest of $623 was either accrued or
paid  during  the  period.

<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           DECEMBER 31, 2000 AND 1999


6.     ADVANCES  FROM  STOCKHOLDERS

     The advances are unsecured, do not bear interest and have no specific terms
of  repayment.  The  advances  are  summarized  as  follows:


                                             DECEMBER  31,        SEPTEMBER  30,
                                                 2000                       2000
                                                 ----                       ----

     Cash  advances  to  the  company     $     253,724            $    245,469
     Repayments                                 (72,917)                (70,416)
     Reimbursable  expenses                       9,771                   8,797
                                                -------                ---------
                                          $     190,578           $     183,850
                                          ======================================

     Average  balance  for  the  period   $     187,214            $    119,535
                                               ========                 =======


ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION.

There  have  been  no  material developments since we filed our Annual Report on
Form  10-KSB  on  January  16,  2001.

The  following  discussion  should  be  read  in  conjunction with our financial
statements  and related notes appearing elsewhere in this Quarterly Report.  The
following discussion contains forward-looking statements that reflect our plans,
estimates,  assumptions  and  beliefs, and that involve risks and uncertainties.
Our  actual  results  could  differ  materially  from  those  discussed  in such
forward-looking  statements.  Factors  that  could  cause  or contribute to such
differences include, but are not limited to, those discussed below and elsewhere
in  this  Quarterly  Report.

Plan  of  Operation

Our  primary  objective  over the 12 months ending December 31, 2001, will be to
complete development of Phase I and Phase II of our twin rotating asphalt mixing
system  (known  as  the  "Trams System") for commercial sale, and to implement a
sales  and  marketing  program  in connection with the sale of the Trams System.

As of the present date, Phase I of the Trams System requires further development
and testing before it can be made available for commercial release.  We have not
yet  started on the development of Phase II of the Trans System due to a lack of
capital  resources.  In addition to the development and testing work that has to
be  performed  on  both  Phase  I  and Phase II of the Trams System, a sales and
marketing  campaign  must  be  implemented.

<PAGE>

We  have  also  acquired  a license to manufacture a self-erecting silo which is
different  from  the self-erecting silo that will be used in the Phase II of the
Trams  System.  We  intend to manufacture this self-erecting silo for commercial
sale  but not until we complete development of Phase I and Phase II of the Trams
System.

Further development of Phase I and Phase II of the Trams System was suspended in
fiscal  2000  to devote attention to the registration of our common shares under
Section  12(g)  of  the  Securities  Exchange  Act  of  1934  and to obtaining a
quotation  of our securities on the Over-the-Counter Bulletin Board.  Our common
shares  were  registered  under  Section 12(g) of the Securities Exchange Act of
1934  in  October,  2000  and  we  have  applied  to the National Association of
Securities Dealers Inc. to have our common shares quoted on the Over-the-Counter
Bulletin  Board.  As  of  the  date  of  this  Quarterly Report, we have not yet
received  approval  from the National Association of Securities Dealers Inc. and
our  shares  are  not  yet  quoted  on  the  Over-the-Counter  Bulletin  Board.

We  anticipate that we will be able to complete our plan of operations if we can
raise  additional  financing.  Our  actual  expenditures  and  business plan may
differ  from  our  plan of operations.  Our board of directors may decide not to
pursue  our plan of operations as set out below.  In addition, we may modify our
plan  of operations based on the amount of available financing in the event that
we  cannot  raise the required financing to complete our plan of operations.  We
do  not currently have any arrangement in place for any debt or equity financing
which  would  enable us to satisfy the cash requirements required by our plan of
operations.

We  anticipate  that  we  will incur further operating losses in the foreseeable
future.  We  base  this expectation in part on the assumption that we will incur
substantial operating expenses in completing our plan of operations.  Our future
financial  results  are also uncertain due to a number of factors, many of which
are  outside of our control.  These factors include, but are not limited to, the
following:

(a)     willingness  of  external  investors to advance capital to us to finance
continued  development  and  production;

(b)     general  economic  conditions,  government environmental regulations and
increased  industry  competition;

(c)     uncertainty  with  respect  to  whether:

(i)     our  Trams  System  can  meet  new  British  Columbia  environmental
regulations;

(ii)     our  Trams  System  can  comply with environmental regulations in other
North  American  jurisdictions;  and

(iii)     our  Trams  System can continue to meet new regulatory requirements as
they  arise;

(d)     whether  there  will be a market for our Phase I or II Trams System once
the  development  is  complete;  and

(e)     whether  demand  for  the  Trams  System  will  be  adequate  to support
economically  viable  production.

Due  to  our lack of operating history, there exists substantial doubt about our
ability  to  continue  as  a  going  concern  as  described  in  our independent
accountant's  report  on,  and  the notes to, the consolidated audited financial
statements  for  the  year  ended  September  30,  2000.

<PAGE>

Cash  Requirements

We  will  require  a  minimum  of  approximately $550,000 over the period ending
September  30,  2001 in order to accomplish our goals.  The cash requirements of
$550,000  are based on our estimates for operational costs for the period ending
September 30, 2001.  We estimate that approximately $30,000 will be required for
further  development  of  Phase I of the Trams System, $150,000 will be required
for  development  of  Phase II of the Trams System, $120,000 will be required to
hire  marketing  and  sales  persons  and  to  implement  our  planned sales and
marketing  program and $70,000 will be required to support an investor relations
program.  The  balance of $180,000 will be required to support general corporate
and  operating  expenses.

To  date,  our operations have been primarily financed by private loans from our
directors  and other related parties totalling $727,504 at December 31, 2000, as
well  as  $95,486  of  refundable  Canadian government investment tax credits on
eligible  research  expenditures.  Since  the share exchange on January 31, 2000
between Global Innovative Systems Inc. and Niew Industries Inc. resulted in Niew
Industries  Inc.  no  longer being owned by Canadians, we expect that we will no
longer  be  eligible  for  any  further  tax  credits.

We  do not have sufficient funds on hand to complete our Phase I development but
we  believe  that  we  will  have  access  to  funds  sufficient to complete the
development  and  negotiate  the  sale  of  the  Phase I Trams System prototype.

We  intend to obtain our future cash requirements through the sale of our equity
securities or by obtaining further debt financing.  In the event that we are not
successful  in  raising  additional financing, we anticipate that we will not be
able  to  sustain  our  business operations without further short-term financing
from  our  controlling  shareholders.  Deficiencies  in  cash will be covered by
additional  loans  and  advances  by  our  directors until such time that we can
attract  equity  investors.  Should  we  be  unable to attract equity investors,
cutbacks and deferrals of the planned development of Phase I and Phase II of the
Trams System would occur until such funds were otherwise available externally or
from  the  proceeds  received  on sale of Phase I of the Trams System prototype.
Alternatively,  we may have to consider a joint venture in order to proceed with
our  plans  of  operations.

Research  and  Development

As  at  December  31,  2000,  we  have  expended $404,663 (net of investment tax
credits  of $95,486) on direct research and development on the Trams System.  We
will  continue  to  expend a significant amount of time in the next 12 months on
research  and  development  activities.  These  activities  will  focus  on  the
following  areas:

-     further  improvement  of  Phase  I  of  the  Trams  System to make it more
efficient  and  to  ensure  that  it  meets  government  standards for pollution
control;  and

-     commencement  of  the  development  on  Phase  II  of  the  Trams  System.

We  estimate  that the completion of Phase I will require approximately $30,000,
consisting  of  $6,000 for testing, $14,000 for materials and $10,000 for labour
and  subcontractors.  At  the  completion  of  Phase  I,  we  intend to sell our
prototype and use the sale proceeds to finance the construction of another Trams
System.

The  Phase  II  of  the Trams System will consist of a second trailer which will
contain  a  self-erecting  silo  and  separate  storage tanks to carry and store
asphalt,  diesel fuel and propane fuel.  We estimate that the cost of developing
and  completing  the  Phase  II  plant will be $150,000, $84,000 for testing and
materials,  $16,000  for general corporate and overhead expenses and $50,000 for
labour  and  subcontractors.

Sales  and  Marketing

We  anticipate that the commercial version of the Trams System will consist of a
package  of  the  Phase  I plant and the Phase II trailer but we also anticipate
that  these  machines  will be sold separately.  Upon completion of Phase II, we
intend  to  transport  the  Trams  System plant to a gravel pit, the location of
which  has  already  been  determined,  and  to  record  set  up  time,  conduct
anti-pollution  equipment  testing  and  record  promotional  videos.

<PAGE>

Personnel

Over  the twelve months ending September 30, 2001, should we be in a position to
proceed  with development of Phase II of the Trams System project, we anticipate
an  increase in the number of employees we retain, as we intend to hire two more
employees.

Purchase  or  Sale  of  Equipment

We  do  not  anticipate  that we will purchase any significant equipment for our
present  or  future operations over the twelve months ending September 30, 2001.

RISK  FACTORS

An  investment in our common shares involves a number of very significant risks.
You  should carefully consider the following risks and uncertainties in addition
to  other information in this Quarterly Report in evaluating us and our business
before  purchasing  shares  of common stock.  Our business, operating result and
financial condition could be seriously harmed due to any of the following risks.
The  trading price of the shares of our common stock could decline due to any of
these  risks,  and  you  could  lose  all  or  part  of  your  investment.

WE  ARE A DEVELOPMENT STAGE COMPANY WITH A LIMITED OPERATING HISTORY WHICH MAKES
IT  DIFFICULT  TO  EVALUATE  WHETHER  WE  WILL  OPERATE  PROFITABLY.

We  are  a  development  stage  company  primarily  involved in the development,
manufacture and marketing of a simplified asphalt mixing system that is intended
to  be  compact,  environmentally  friendly  and  easy to mobilize.  We call our
product  the  Trams  System.  As  a  relatively new company, we have not started
selling  our  product,  and  as  a result, we do not have a historical record of
sales and revenues nor an established business track record.  We have not earned
any  revenues  since  our  formation.

Unanticipated  problems,  expenses  and  delays  are  frequently  encountered in
ramping  up  sales  and  developing  new  products.  Our ability to successfully
develop,  produce and sell our Trams System and to eventually generate operating
revenues  will  depend  on  our  ability  to,  among  other  things:

-     successfully  design,  develop and market both Phase I and Phase II of the
Trams  System;

-     successfully  develop  our  second  prototype  of  the  Trams  System;

-     successfully  develop  a  customer  base  for and market acceptance of our
Trams  System;  and

-     obtain  the necessary financing to implement our business plan and plan of
operations.

Given  our  limited operating history, lack of sales and operating losses, there
can  be  no  assurance  that  we  will be able to achieve any of these goals and
develop  a  sufficiently  large  customer  base  to  be  profitable.

SINCE  WE  HAVE  A  HISTORY OF NET LOSSES AND A LACK OF ESTABLISHED REVENUES, WE
EXPECT  TO  INCUR  NET  LOSSES  IN  THE  FUTURE.

We  did not generate any revenues and incurred a cumulative loss of $667,281 for
the period from January 15, 1997 (incorporation) to December 31, 2000.  Although
we  anticipate  that we will be able to generate revenues in the future, we also
expect development costs and operating costs to increase as well.  Consequently,
we  expect  to  incur  operating  losses  and negative cash flow until our Trams
System  gains sufficient market acceptance to generate a commercially viable and
sustainable level of sales, additional Trams System prototypes are developed and
commercially  released  and  sales  of  such  products  are  made so that we are
operating  in  a profitable manner.  These circumstances raise substantial doubt
about  our ability to continue as a going concern as described in an explanatory
paragraph  to  our  independent  accountant's  report  on the September 30, 2000
audited  financial  statements.  To  the

<PAGE>

extent  that  such expenses are not followed by revenues in a timely manner, our
business,  results  of  operations,  financial  condition and prospects would be
materially  adversely  affected.

WE  ARE  UNCERTAIN THAT WE WILL BE ABLE TO OBTAIN ADDITIONAL CAPITAL THAT MAY BE
NECESSARY  TO  ESTABLISH  OUR  BUSINESS.

We  incurred  a  cumulative  net  loss  for  the  period  from  January 15, 1997
(incorporation)  to  December 31, 2000 of $667,281.  As a result of these losses
and negative cash flows from operations, our ability to continue operations will
be  dependent  upon  the availability of capital from outside sources unless and
until  we  achieve  profitability.

Our future capital requirements will depend on many factors, including cash flow
from  operations,  progress  in developing new products, competing knowledge and
market  developments  and  an  ability to successfully market our products.  Our
recurring  operating losses and growing working capital needs will require us to
obtain  additional  capital  to  operate our business before we have established
that  our business will generate significant revenue.  We do not have sufficient
funds  on hand to complete our Phase I development but we believe we have access
to  funds  sufficient  to complete the development and negotiate the sale of the
Phase  I  Trams  System  prototype.  We  have  predicted  that  we  will require
approximately  $550,000  over  the  period ending September 30, 2001 in order to
accomplish  our  goals of designing, developing, manufacturing and marketing the
Trams System.  However, there is no assurance that actual cash requirements will
not  exceed our estimates.  In particular, additional capital may be required in
the  event  that  we:

-     incur unexpected costs in completing the development of our Tram System or
encounter  any  unexpected  technical  or  other  difficulties;

-     incur  delays  and  additional expenses as a result of technology failure;

-     are  unable  to  create  a  substantial  market  for  our Trams System; or

-     incur  any  significant  unanticipated  expenses.

The  occurrence  of  any of the aforementioned events could adversely affect our
ability  to  meet  our  business  plans.

We  will  depend  almost exclusively on outside capital to pay for the continued
development  of  the Trams System.  Such outside capital may include the sale of
additional  stock  and/or  commercial borrowing.  There can be no assurance that
capital  will  be  available  if  necessary to meet these continuing development
costs  or,  if  the  capital is available, it will be on terms acceptable to us.
The issuance of additional equity securities by us would result in a significant
dilution  in  the  equity  interests  of  our  current  stockholders.  Obtaining
commercial  loans,  assuming  those loans would be available, would increase our
liabilities  and future cash commitments.  If we were unable to obtain financing
in  the  amounts and on terms deemed acceptable, our business and future success
may  be  adversely  affected.

OUR  FAILURE  TO  EFFECTIVELY  MANAGE  OUR GROWTH COULD HARM OUR FUTURE BUSINESS
RESULTS  AND  MAY  STRAIN  OUR  MANAGERIAL  AND  OPERATIONAL  RESOURCES.

As  we proceed with the development of our Trams System, we expect to experience
significant  and  rapid  growth in the scope and complexity of our business.  We
will  need  to add staff to market our products, manage operations, handle sales
and  marketing efforts and perform finance and accounting functions.  We will be
required to  hire a broad range of additional personnel in order to successfully
advance  our  operations.  This  growth  is  likely  to  place  a  strain on our
management  and  operational  resources.  The  failure  to develop and implement
effective  systems,  or  to  hire  and  retain  sufficient  personnel  for  the
performance  of all of the functions necessary to effectively service and manage
our  potential business, or the failure to manage growth effectively, could have
a  materially  adverse  effect  on  our  business  and  financial  condition.

FUTURE SALES OF COMMON STOCK BY OUR EXISTING SHAREHOLDERS COULD REDUCE THE PRICE
OF  OUR  COMMON  STOCK.

<PAGE>

If  our  common  shares  become  publicly traded, the market price of our common
stock  could decline as a result of sales by our existing stockholders of shares
of  common stock in the market.  Likewise, the perception that these sales could
occur  may result in the decline of the market price of our common stock.  These
sales  also might make it more difficult for us to sell equity securities in the
future  at  a  time  and  at  a  price  we  deem  appropriate.

UNLESS  WE  CAN  ESTABLISH  SIGNIFICANT SALES OF OUR TRAMS SYSTEM, OUR POTENTIAL
REVENUES  MAY  BE  SIGNIFICANTLY  REDUCED.

We  expect that a substantial portion, if not all, of our future revenue will be
derived  from the sale of our Trams System.  We expect that the Trams System and
any  similar products we develop will account for a majority, if not all, of our
revenue  for  the foreseeable future.  Market acceptance of the Trams System is,
therefore,  critical to our future success and our ability to generate revenues.
Failure  to  achieve  market  acceptance  of  the  Trams  System, as a result of
competition,  technological  change,  or otherwise, would significantly harm our
business.  Our  future  financial performance will depend in significant part on
the  successful  introduction  and market acceptance of the Trams System, and on
the  development,  introduction  and  market  acceptance of any future products.
There  can  be  no  assurance  that we will be successful in marketing the Trams
System  or any future products and any failure to do so would significantly harm
our  business.

IF  WE  ARE UNABLE TO ACHIEVE MARKET ACCEPTANCE FOR OUR TRAMS SYSTEM, WE WILL BE
UNABLE  TO  BUILD  OUR  BUSINESS.

Our  success  will  depend  on  the  acceptance  of  our products by the asphalt
industry.  Achieving  such  acceptance  may  require  a  significant  marketing
investment.  We cannot assure you that our existing or proposed products will be
accepted  by the asphalt industry at sufficient levels to support our operations
and  build  our  business.

THE LOSS OF OUR KEY TECHNICAL INDIVIDUALS WOULD HAVE AN ADVERSE IMPACT ON FUTURE
DEVELOPMENT  AND  COULD  IMPAIR  OUR  ABILITY  TO  SUCCEED.

Our  performance is substantially dependent on the technical expertise of Walter
Niemi  and  Lloyd  Olson  and  our  ability  to continue to hire and retain such
personnel.  The  loss  of  either  Walter Niemi or Lloyd Olson or any of our key
officers  could  have  a  material  adverse effect on our business, development,
financial condition, and operating results. We do not maintain "key person" life
insurance  on  any  of our directors or senior executive officers but we do have
life  insurance  on  Walter  Niemi  and  Lloyd  Olson.

TRADING  OF  OUR  STOCK  MAY  BE RESTRICTED BY THE SEC'S PENNY STOCK REGULATIONS
WHICH  MAY  LIMIT  A  STOCKHOLDER'S  ABILITY  TO  BUY  AND  SELL  OUR  STOCK.

The  U.S.  Securities  and  Exchange  Commission  has  adopted regulations which
generally define "penny stock" to be any equity security that has a market price
(as  defined)  less than $5.00 per share or an exercise price of less than $5.00
per  share,  subject  to  certain exceptions.  Our securities are covered by the
penny  stock  rules,  which  impose  additional  sales  practice requirements on
broker-dealers  who  sell  to  persons  other  than  established  customers  and
"accredited  investors."  The  term  "accredited  investor"  refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in  excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with  their  spouse.  The  penny stock rules require a broker-dealer, prior to a
transaction  in  a penny stock not otherwise exempt from the rules, to deliver a
standardized  risk  disclosure  document  in  a  form  prepared by the SEC which
provides information about penny stocks and the nature and level of risks in the
penny  stock  market.  The  broker-dealer  also  must  provide the customer with
current  bid  and  offer quotations for the penny stock, the compensation of the
broker-dealer  and  its  salesperson  in  the  transaction  and  monthly account
statements  showing  the market value of each penny stock held in the customer's
account.  The  bid  and  offer quotations, and the broker-dealer and salesperson
compensation  information,  must  be  given to the customer orally or in writing
prior  to effecting the transaction and must be given to the customer in writing
before  or with the customer's confirmation.  In addition, the penny stock rules
require  that  prior to a transaction in a penny stock not otherwise exempt from
these  rules,  the  broker-dealer must make a special written determination that
the  penny  stock  is  a  suitable  investment for the purchaser and receive the
purchaser's written agreement to the transaction.  These disclosure requirements
may  have  the effect of reducing the level of trading activity in the secondary
market  for the stock that is subject to these penny stock rules.  Consequently,
these  penny  stock  rules may affect the ability of broker-dealers to trade our

<PAGE>

securities.  We  believe that the penny stock rules discourage investor interest
in  and  limit  the  marketability  of,  our  common  stock.

SINCE  A  RELATIVELY  SMALL  GROUP OF STOCKHOLDERS OWN A LARGE PERCENTAGE OF OUR
OUTSTANDING  SHARES,  THEY ARE ABLE TO SIGNIFICANTLY INFLUENCE MATTERS REQUIRING
STOCKHOLDER  APPROVAL.

Stockholders  owning  a  majority  (i.e.  51%)  of  our outstanding voting stock
represent  the  ultimate control over our affairs.  Three stockholders currently
control  approximately  55% of the outstanding shares of our common stock.  As a
result  of this ownership, these stockholders will likely be able to approve any
major  transactions  including the election of directors without the approval of
the  other  shareholders.

WE  DO  NOT  EXPECT  TO  DECLARE  OR  PAY  ANY  DIVIDENDS.

We  have  not  declared  or  paid  any  dividends  on our common stock since our
inception,  and  we  do  not  anticipate  paying  any  such  dividends  for  the
foreseeable  future.

BECAUSE  OF OUR LIMITED OPERATING HISTORY, IT IS DIFFICULT TO PREDICT OUR FUTURE
REVENUES.

As  a  result  of  our limited operating history and the new technology which we
seek  to  introduce  into  the  markets  in  which  we compete, we are unable to
accurately  forecast  our  revenues.  Our  current and future expense levels are
based  largely on our plan of operation and estimates of future revenues and are
to  a  large  extent  fixed.

Sales and operating results generally depend on our ability to develop a base of
customers  and  businesses who will purchase or lease Trams Systems from us.  We
may  be  unable  to  adjust  spending  in  a timely manner to compensate for any
unexpected  revenue  shortfall.  Accordingly,  any  significant  shortfall  in
estimated  revenues  in  relation  to  our  planned  expenditures  would have an
immediate  adverse  effect  on  our business, prospects, financial condition and
results  of  operations.

Further,  as  a strategic response to changes in the competitive environment, we
may  from time to time make certain pricing, service or marketing decisions that
could  have  a materially adverse effect on its business and financial condition
and  results  of  operations.

WE  EXPECT  FLUCTUATIONS  IN  OUR  QUARTERLY  OPERATING  RESULTS  IN THE FUTURE.

We  expect  to  experience  significant  fluctuations  in  our  future quarterly
operating  results  due  to  a variety of factors, many of which are outside our
control.  Factors  that  may  adversely  affect  our quarterly operating results
include  but  are  not  limited  to:

-     our  ability  to  attract  and  retain  customers  and  maintain  customer
satisfaction;

-     our ability to develop a base of manufacturers and users of asphalt plants
willing  to  utilize  the  Trams  System  for  paving  applications;

-     the announcement or introduction of new services and products by us and by
our  competitors;

-     an  increase  in consumer acceptance of the Trams System, or other systems
and  products  offered  by  us;

-     our  ability  to  upgrade  and  develop  our Trams Systems and attract new
personnel  in  a  timely  and  effective  manner;

-     the amount and timing of operating costs and capital expenditures relating
to  expansion  of  our  business,  operations  and  infrastructure;

<PAGE>

-     governmental  regulation;

-     general  economic  conditions;  and

-     economic  conditions  specific  to  the  asphalt  manufacturing and paving
industries.

BECAUSE  OF  THE  TYPE  OF  INDUSTRY WE ARE INVOLVED IN, WE EXPECT TO EXPERIENCE
SEASONALITY  IN  OUR  BUSINESS.

We  expect  that  we  will  experience seasonality in our business, reflecting a
combination  of  seasonal  fluctuations  in  construction  and  paving projects'
seasonality patterns.  Due to the foregoing factors, one or more future quarters
our operating results may fall below the expectations of securities analysts and
investors.  In  such event, our financial performance would likely be materially
adversely  affected.

WE  WILL HAVE TO EXPEND SUBSTANTIAL FUNDS ON ADVERTISING, SALES AND MARKETING IN
THE  FUTURE.

We  have  not  incurred significant advertising, sales and marketing expenses to
date.  To  increase  awareness  for  the  Trams  System,  we  expect  to  spend
significantly  more  on  advertising,  sales and marketing in the future. If our
marketing strategy is unsuccessful, we may not be able to recover these expenses
or  even  generate any revenues.  We will be required to develop a marketing and
sales campaign that will effectively demonstrate the advantages of our, services
and  products.  To  date,  our  experience  with  respect to marketing the Trams
System  is  very  limited.  We  may  also  elect  to  enter  into  agreements or
relationships  with  third  parties  regarding the promotion or marketing of the
Trams  System.  There  can  be  no  assurance  that we will be able to establish
adequate  sales  and  marketing capabilities, that we will be able to enter into
marketing  agreements  or  relationships  with  third  parties  on  financially
acceptable  terms,  or  that  any  third  parties  with  whom we enter into such
arrangements  will be successful in marketing and promoting the Trams System, or
other  products  and  services  offered  by  us.

OUR  FUTURE  REVENUES  ARE  DEPENDENT  ON  THE  ACCEPTANCE  OF THE TRAMS SYSTEM.

Our  future  revenues  and  our  ability  to  generate profits in the future are
substantially  dependent  upon  the  widespread  acceptance and use of the Trams
System.  There  can  be no assurance that acceptance and use of the Trams System
will  develop  or that a sufficiently broad base of consumers will use the Trams
System.

We  will rely on manufacturers and users of asphalt plants who have historically
used  traditional means for asphalt manufacturing.  To ensure our success, these
manufacturers  and  users  of  asphalt  plants must accept and utilize our novel
Trams  System.  In  addition,  the  Trams System may not be accepted as a viable
alternative  to  traditional  asphalt  manufacturing  processes  for a number of
reasons,  including  potentially  inadequate  development  of  the  necessary
infrastructure  or  delayed  development of related technologies and performance
improvements.

WE  EXPECT  TO  ENCOUNTER  RISKS  IF  WE  ENTER  INTO  NEW  BUSINESS  AREAS.

We  may  choose  to  expand our operations by improving the Trams System or even
developing new systems for the asphalt industry or expanding our market presence
through  relationships  with  third  parties.  In  addition,  we  may pursue the
acquisition  of  new  or  complementary  businesses,  products  or technologies,
although  we  have  no  present  understandings,  commitments or agreements with
respect  to any material acquisitions or investments.  There can be no assurance
that  we  would be able to expand our efforts and operations in a cost-effective
or  timely  manner  or  that  any  such  efforts  would  increase overall market
acceptance.

Expansion  of  our  operations  in  this  manner  would also require significant
additional  expenses and development, operations and editorial resources and may
strain  our management, financial and operational resources.  The lack of market
acceptance  of  such  efforts or our inability to generate satisfactory revenues
from  such  expanded  services  or  products  to  offset their cost could have a
materially  adverse  effect  on our business, prospects, financial condition and
results  of  operations.

<PAGE>

IF OUR COMMON SHARES ARE TRADED ON A PUBLIC MARKET, THERE MAY BE THE POSSIBILITY
OF  VOLATILE  SHARE  PRICES.

If listed for trading on the OTC Bulletin Board, the trading price of our common
shares may be subject to wide fluctuations.  Trading prices of the common shares
may  fluctuate  in response to a number of factors, many of which are beyond our
control.  In addition, the stock market in general has experienced extreme price
and  volume  fluctuations  that have often been unrelated or disproportionate to
the  operating performance of such companies.  Broad market and industry factors
may  adversely  affect  the market price of the common shares, regardless of our
operating  performance.

In  the past, following periods of volatility in the market price of a company's
securities,  securities class-action litigation has often been instituted.  Such
litigation,  if  instituted,  could  result  in  substantial  costs for us and a
diversion  of  management's  attention  and  resources.

OUR  CURRENT  AND  FUTURE  SHAREHOLDERS  MAY  EXPERIENCE DILUTION IN THE FUTURE.

The  grant  and  exercise of warrants of creditors or otherwise or stock options
would  likely result in a dilution of the value of our common shares.  Moreover,
we may seek authorization to increase the number of our authorized shares and to
sell additional securities and/or rights to purchase such securities at any time
in  the  future.  Dilution of the value of the common shares would likely result
from  such  sales.

                           PART II - OTHER INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS.

We  are  not a party to any pending legal action, suit, or proceeding nor is any
of  our  property the subject of any legal proceeding.  There are no proceedings
in  which  any  of  our  directors, officers or affiliates, or any registered or
beneficial  shareholder,  is an adverse party or has a material interest adverse
to  our  interest.

ITEM  2.     CHANGES  IN  SECURITIES.

We  did not issue any shares from treasury during the quarter ended December 31,
2000.

ITEM  3.     DEFAULTS  UPON  SENIOR  SECURITIES.

None.

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

None.

ITEM  5.     OTHER  INFORMATION.

None.

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K.

Reports  on  Form  8-K

We  did  not  file any Reports on Form 8-K during the quarter ended December 31,
2000.

Exhibits

Exhibits  Required  by  Item  601  of  Regulation  S-B

<PAGE>

(3)     Articles  of  Incorporation  and  By-laws

     3.1     Charter  (filed as an exhibit to our Registration Statement on Form
             10SB on April 11,  2000,  and  incorporated  herein  by  reference)

     3.2     Articles  of Incorporation (filed as an exhibit to our Registration
             Statement on Form 10SB on April 11, 2000 and incorporated herein by
             reference)

     3.3     Bylaws  (filed  as an exhibit to our Registration Statement on Form
             10SB  on  April  11,  2000,  and  incorporated herein by reference)

(10)     Material  Contracts

     10.1    Amending  Agreement between Ian Westwood and Global, dated November
             22, 2000 (filed as  an  exhibit to our Annual Report on Form 10-KSB
             on January 16, 2001)

<PAGE>

                                   SIGNATURES

In  accordance  with the requirements of the Exchange Act, the registrant caused
this  report  to  be  signed  on  its  behalf by the undersigned, thereunto duly
authorized.


     GLOBAL  INNOVATIVE  SYSTEMS,  INC.

     By:     /s/  Helge  Freudentheil
             Helge  Freudentheil,  President/Director

     Date:   February  9,  2001


     By:     /s/  Ken  Bergestad
             Ken  Bergestad,  Vice  President/Director

     Date:   February  9,  2001


     By:     /s/  Walter  Niemi
             Walter  Niemi,  Secretary/Treasurer/Director

     Date:   February  9,  2001


     By:     /s/  Robert  Stark
             Robert  Stark,  Vice  President/Director

     Date:   February  9,  2001